hw_28sol

hw_28sol - Effect on Profit Calculations: $2,624 (736)...

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Problem 28 Case 1 Effect on Profit Calculations: Incremental revenue $30,000 $3*10,000 Incremental costs: DM (15,000) ($54,000/36,000) x 10,000 DL (10,000) ($36,000/36,000) x 10,000 Incremental increase in profit if order is accepted $5,000 The order should be accepted since profit increases by $5,000. Case 2 Incremental analysis:
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Unformatted text preview: Effect on Profit Calculations: $2,624 (736) (352) (448) $1,088 The order should be accepted since profit increases by $1,088. Incremental revenue 3,200* $0,82 Incremental costs: DM 3,200*$0.32 DL 3,200*$0.11 Variable MOH 3,200*$0.14 Incremental increase in profit if special order accepted...
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